Budget Resolution 4. Tax Treatment of Payments Related to the Termination of Employment — 6 Sep 2017 at 18:44

The majority of MPs voted to give the government the power to alter the tax treatment of payments made in connection with the termination of employment.

The Spring Budget 2017 contained a provision for:

• "Aligning the tax and employer NICs treatment of termination payments and preventing manipulation of the rules"

The motion which was the subject of this vote was presumably intended to enable the described alignment to take place, perhaps prior to the enactment of Clause 5 of the Finance Bill 2017-19.

The motion supported by the majority of MPs in this vote was:

• That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year about the tax treatment of payments or benefits received in connection with the termination of an employment or a change in the duties in, or earnings from, an employment.

Motions of this nature are known as Budget Resolutions or Ways and Means Resolutions.

Debate in Parliament |